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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Master Circular for Online Resolution of Disputes in the Indian Securities Market

11-Aug-2023 | SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/145

Securities and Exchange of India has issued an updated Master Circular for Online Resolution of Disputes in the Indian Securities Market, effective from August 11, 2023.

Key highlights of the updated master circular include:

Initiation of Dispute Resolution Process: Investors/clients are required to first address their grievances with the Market Participant by lodging a direct complaint. If the grievance is not resolved to satisfaction, according to SCORES guidelines, escalation through the SCORES Portal is permitted.

Conciliation: The ODR Institution will appoint an independent and neutral conciliator from its panel of conciliators when a complaint/dispute reference is received.

Arbitral Award Challenge: If challenging an arbitral award, the Market Participant must deposit 100% of the award's payable amounts with the relevant MII before initiating the challenge.

Venue and Seat: The place for online proceedings will be determined by the location of the investor/client. For disputes involving listed companies, intermediaries, or regulated entities, the place is determined by the investor's residence, registration, or principal place of business in India, as stated in the relevant KYC documents.

Note: This updated Master Circular consolidates circulars dated July 31, 2023, and includes amendments from the Corrigendum cum Amendment dated August 4, 2023, on Online Resolution of Disputes in the Indian Securities Market.

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